North Carolina Down Payment Assistance Systems

Online Merchant account - The North Carolina Housing Finance Agency has two amazing plans for First Time Home Buyers. These systems would be the Down Payment Assistance Program and also the Mortgage Credit Certificate.

You purchase a property and December 1, 2009 and if you qualify for one of the programs, you could also be eligible for the $8,000 tax credit only enacted into law.

First, who is a first-time Home Buyer? There is a first-time Home Buyer someone who hasn't owned a home in the prior three years. This is precisely the same qualifying definition for the $8,000 tax credit.

What is a Mortgage Credit Certificate and Who Qualifies?

All home owners can claim an itemized deduction. The MCC takes this a step further. An MCC “reduces your tax liability according to a percentage of the mortgage interest which you pay.

In case you qualify for the MCC, you are able to claim 20% of the interest you pay as a credit in your federal income taxes. You are able to save up to .

Should you qualify for 2009, for the MCC, you may have the ability to unite this. This might reduce a purchaser's tax liability .

Who Qualifies for an MCC?

Household income is defined as the “gross income of the mortgagor and any man expected to live in the home who is 18 years of age or older.”

House price limitations that apply in Durham, Orange and Chatham Counties and the income are given below.

MCC Income Limits 1 Individual $61,500 2 Persons $61,500 3 Persons $70,500 4 Men $70,500

MCC Sales Cost Limitations New Home $220,000 Existing House $210,000

The buyer just has to pay and the load would pay up to $8,000 of the remaining balance.

This program has more stringent income limitations than the MCC program summarized above. Like the MCC program, it can be used together with the new $8,000 tax credit on house purchases between January 1, 2009 and December 1, 2009. The down payment assistance, however, cannot be applied together with the MCC. This really is an either or scenario.

The income and house price limitations that apply in Durham, Orange and Chatham Counties are given below.

Down Payment Assistance Income Limits

1 Individual $39,950 2 Persons $45,650 3 Men $51,350 4 Individuals $57,050

Down Payment Assistance Sales Cost Limits New Home $210,000 Existing Dwelling $210,000